The Scope Of Protected Activity Under SOX

Law360 (August 9, 2007, 12:00 AM EDT) -- Section 806 of the Sarbanes-Oxley Act, 18 U.S.C § 1514A, creates a civil cause of action to protect “whistleblowing” employees against retaliation for reporting securities law violations or fraud against the shareholders of a public corporation.

The Department of Labor’s interpretive regulations state that “[a] determination that a violation has occurred may only be made if the complainant had demonstrated that protected behavior or conduct was a contributing factor in the unfavorable personnel action alleged in the complaint.”

Thus, to succeed under § 806, a complainant...
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